Debt collection is the process by which a person or entity who is owed money or property seeks payment for the debt. Debt collection may be performed by the person or entity who is owed the debt (the creditor), or may be performed by a third-party debt collector hired by the creditor to collect the debt on behalf of the creditor. Sometimes creditors sell the debt to another entity at a discounted value, and the entity that purchases the debt becomes the creditor.

Debts that are often the subject of debt collection efforts include (1) credit card debt; (2) car or auto loan debt; (3) medical debt; (4) student loan debt; (5) unpaid utility and telephone bills; and (6) personal loan debt.

If you owe money, you have a legal obligation to repay it. But state and federal laws—such as the Fair Debt Collection Practices Act—prohibit debt collectors from using deceptive or abusive behavior to collect the debt.

In North Dakota, debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets national standards for the collection of debts, prohibiting deceptive, abusive, or unfair practices by third-party debt collectors. This means that debt collectors cannot harass, oppress, or abuse any person, nor can they use false or misleading representations to collect a debt. In North Dakota, creditors may attempt to collect debts themselves or hire third-party debt collectors. Additionally, creditors can sell debts to other entities, which then become the new creditors. Common types of debts subject to collection efforts include credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. It's important for consumers in North Dakota to understand their rights under the FDCPA and state laws, which are designed to protect them from wrongful debt collection practices while still obligating them to repay legitimate debts.